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Straight Answers · Refinancing
Can my bank refix my rate if my income has dropped, or do I need to reapply?
Bayley Clarke · Mortgage broker on the road · Last checked 11 November 2026 · 3 min read
The short answer
Yes. If you want to go from variable to fixed, or refix when your current fixed term ends, you can do that with your current bank at any time you like. They don't need to reassess your application or work out whether you can still afford the loan, because they already approved you for it in the first place.
It's only if you're looking to switch banks that we go through the full reassessment process, at your income as it is today. So if you want to fix, you just ask your bank, they'll put you on the new fixed rate for anywhere from one to five years, and you're on your merry way.
The 60 second version, filmed from the driver's seat. The rest of this page is the detail underneath it.
Why your bank doesn't reassess you
Fixing your rate with the bank you're already with is what's called a product switch. The loan stays the same, the amount stays the same, the property stays the same. All that changes is how the interest is charged. The bank did its assessment when it approved the loan, and it's not lending you any new money, so there's no reason to check your income again.
That's genuinely good news if your income has dropped since you bought. Maybe you've gone part time, had a baby, changed jobs or had a slower year in business. None of that stops you fixing or refixing with your current bank. You call them, or ask through the app, pick the term, and it's done.
Where the income drop does matter
Switching banks is a different story. A refinance to a new lender is a brand new loan, so the new bank assesses you from scratch: your income now, your expenses now, your debts now, all tested at a buffered rate. If your income has dropped, you may not qualify for the same loan elsewhere, even if you've never missed a repayment.
So when your income is down, your current bank often becomes the main game. That doesn't mean taking whatever rate they offer. It means asking them for a sharper rate, comparing it to what's available in the market, and using that comparison in the conversation. Banks can and do reprice existing customers without reassessing them.
Before you lock in
Fixing gives you certainty on the repayment, which is worth a lot when money's tighter. But there are a couple of things to know first. Fixed loans often limit extra repayments and may not come with a full offset, so check what you'd give up. And if you need to break the fixed rate early, say you sell or refinance before the term ends, there can be break costs.
Pick a term that matches how long you expect things to stay as they are. If you think your income will bounce back in a year or two, a shorter fix keeps your options open.
The honest bit: arrears or hardship change things
The no-reassessment rule assumes your loan is in good standing. If you're behind on repayments or on a hardship arrangement, the bank may want to sign off on any change, and fixing may not be on the table straight away.
If that's you, talk to your bank early, or give me a call and we'll work out the best path before you make any changes.
Want to know if you're getting a fair fixed rate?
A 30 minute call. We look at what your bank is offering, what the market's doing, and whether refixing, repricing or switching makes the most sense for you right now.
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Next question
My fixed rate is ending in a few months. What should I do to get ready?Do nothing and on expiry day you roll onto your bank's revert variable rate, whatever they set it at, usually above what new customers get.
Related answers
The full guide: Your fixed rate is ending: the 90 day plan The full guide: Fixed, variable or split The full guide: Why can't I refinance? Rates went up again. Should I fix? I've never missed a repayment, so why won't the bank refinance me? Should I call my bank's retention team myself? What is a split loan, and how do people use it?Not your question? Book a call and ask it, or call 0437 189 939.